But the research reveals a disconnect
Cyber is now the biggest business risk for US SMEs
But just 30% see ransomware as a major threat, despite it being our most costly claim type
74% don't realize cyber insurance covers human error
Despite human error contributing to 75% of cyber claims
68% don't think cyber insurance comes with proactive cyber security protection
Yet most comprehensive cyber policies include these services at no extra cost
68% think AI will increase risk in the coming years
But are US SMEs prepared for the risk AI presents now?
UK, US, Canada and Australia SME respondents and CFC January–December 2025 claims data.
Many SMEs misunderstand cyber insurance
Knowing cyber insurance exists doesn't mean understanding what it provides. Our research reveals widespread misconceptions about how cyber insurance responds – and the support it provides before, during and after an incident.
The broker opportunity – to help clients understand cyber insurance and how it's key to protecting their business.
What will I learn?
Discover why 94% of insured SMEs feel confident they can manage cyber risk.
Download the full report here
Where you can make the biggest impact
Our research reveals where understanding falls short – and where brokers can make a difference.
The Cyber Insurance Disconnect
This report gives brokers SME insights and practical guidance to clear up cyber insurance misconceptions and help go from conversations to protected clients.
Inside, you'll learn:
- What SMEs really think about cyber risk and insurance
- How AI is changing the risk landscape
- Where misconceptions exist
- What good cyber preparedness looks like
As cyber risk evolves, SMEs need more guidance, not less
Our research reveals a growing disconnect between SMEs' awareness of cyber risk and their understanding of how cyber insurance helps to protect them.
This creates a clear opportunity for brokers – to lead cyber conversations that hit the mark, addressing client misconceptions, strengthening client outcomes and driving cyber growth. This report is designed to support just that.
Lindsey Maher, Head of Global Cyber Development at CFC
Findings are based on independent research conducted on behalf of CFC among SME decision-makers in UK, US, Canada and Australia Statistics reflect survey responses at the time of research and are provided for general information purposes only. Any references to CFC claims data are included for illustrative context and should not be relied upon as a guarantee of future outcomes.